Author - OTI

OTI Receives New Purchase Order for 1,000 Cashless Payment Systems for the Japanese Unattended Retail Market

 ROSH PINNA, Israel, June 13 On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it received a purchase order for 1,000 cashless payment systems from Japan via its partner, Billing Systems Cooperation, a leading regional payment service provider.

Commented Shlomi Cohen, CEO of OTI, “We continue to broaden our footprint in the vast Japanese unattended retail market, and with a potential of six million units countrywide the total size of the Japanese electronic vending machine market is very significant for us. This gives us a substantial runway to continue our growth together with our strategic partner. With more than 10,000 OTI systems already operational in the Japanese market, we look at this new order as a reassurance of a continued and growing stronghold in the area.”

The systems ordered included OTI’s UNO Plus EMVco and FeliCa contactless reader as well as the GoBox Multi-Service Telemetry Gateway. OTI’s GoBox is a powerful Machine-to-Machine (M2M) controller, payment gateway, and multi-services enabler for unattended machines, providing innovative new revenue streams for vending operators.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,”  “expect,” “intend,” “plan,” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding broaden our footprint in the vast Japanese unattended retail market, continue our growth together with our strategic partner and looking at this new order as a reassurance of continued and growing stronghold in the area. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Investor Relations Contact:

Gavriel Frohwein

+1 646 688 3559

oti@gkir.com

 

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On Track Innovations Ltd. Announces Transition in Leadership Team

ROSH PINA, Israel, June 12, 2019 /PRNewswire/ — On Track Innovations Ltd. (Nasdaq: OTIV) (the “Company” or “OTI“), a global provider of near field communication (NFC) and cashless payment solutions, today announced that its Chief Executive Officer (“CEO“) and member of the Board of Directors, Mr. Shlomi Cohen, will step down from the position of CEO by the end of 2019 and will then assume the role of Chairperson of the Board. The Company has initiated the process of recruiting a new Chief Executive Officer.

After 4 years as OTI’s CEO during one of the most challenging times of the Company’s history, Mr. Cohen will be nominated as the OTI’s Chairperson of the Board. In connection with this role, Mr. Cohen will undertake to actively support OTI management and provide other services as the OTI Board may request from him. Subject to approval by the Company’s shareholders, the transition will be effective January 1, 2020.

During the past 4 years, Mr. Cohen has led a turnaround within OTI, focusing on core assets and strengths, while cutting the Company’s debt materially, and increasing gross margins. He has implemented a new strategy for the coming years with more focus on the cashless payment activities and moving from being a product company to a solution company.

“Shlomi has been doing fantastic work in the last few years within OTI and was able to create a dramatic change that we believe will lead OTI into a new era of growth over the coming years,” said Scott Medford, the Company’s current Chairperson of the Board. “I am very pleased that Shlomi accepted our nomination as next Chairperson of the Board. His experience and his knowledge will support the future development of OTI and we expect that a new CEO that will join us before the end of this year, will build on Shlomi’s success and lead OTI to stable profitability and healthy revenue acceleration,” said Mr. Medford. After stepping down from the position of Chairperson of the Board, Mr. Medford is expected to continue to serve as a Director.

About On Track Innovations Ltd
On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com, the content of which does not form a part of this press release.

Safe Harbor / Forward-Looking Statements
This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the Company’s expectations to recruit a new chief executive officer by the end of 2019, the effectiveness of Mr. Cohen’s role as chairperson of the Board, which is subject to shareholder approval of his terms of compensation, and the expectation that the Company will grow and accelerate revenues. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Press Contact:

Richard Harris, OTI

Director of Marketing

+972-4-686-8004

press@otiglobal.com

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1-646-688-3559

oti@gkir.com

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OTI Continues to Extend Footprint in the Russian Market with Additional PO for 2,000 Advanced Payment Systems

ROSH PINNA, Israel, June 03, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it had received another significant order for more than 2,000 advanced payment systems for use in Russian ticketing.

This additional order builds on OTI’s previous success in the significant Russian market, having delivered to date almost 18,000 cashless payment systems.

The Uno EMVco & MIR certified NFC ultra-compact payment platform is explicitly designed to meet the needs of unattended kiosk and self-service payment environments, the system can also be used for Smart Electric Vehicle charging stations, and smart ATMs.

OTI’s CEO Shlomi Cohen commented, “We won this order based on our leading technological capabilities and it is a demonstration of the highest level of security. This important customer has become another key reference for us in Russia, and we look forward to accelerating our momentum in the region over the coming quarters and years.”

MIR approval was granted to OTI in August 2018, enabling Russian consumers to use an OTI cashless payment solution as a convenient way to make payments through unattended automated machines. The Russian national payment system created the MIR payment card at the end of 2015 with the primary objective that sovereign payments would be independent of foreign organizations. In only 4 years, the number of MIR cards issued has grown quickly and currently amounts to over 56 million, over 20% market share, based on data from the Russian Central Bank.

 

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel.

For more information, visit www.otiglobal.com.

OTI Press Contact:

Richard Harris

Marketing Manager

+972-4-686-8004

press@otiglobal.com

Investor Relations Contact:

Gavriel Frohwein

+1 646 688 3559

oti@gkir.com

 

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “intend,” “plan,” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth, revenues, profitability, accelerating our momentum in Russia over the coming quarters and years,  position in the market, contributions of new or existing regions or markets to our growth, and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

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OTI Receives Purchase Order for additional 3,000 Advanced UNO 8 Readers for Smart ATM Global Market

ROSH PINNA, ISRAEL — May 14, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, has received a new purchase order to deliver 3,000 of OTI’s Uno-8 advanced secure contactless NFC readers to the global Smart ATM market.

Smart ATMs provide secure, simple, fast convenient and banking, 24 hours a day, seven days a week. Adding an OTI EMV certified contactless reader provides an ATM with the ability to identify the account owner and communicate with their smart devices.

OTI has successfully delivered to date almost 40,000 advanced readers systems and expects to continue delivering significant numbers in the future.

“As this new order demonstrates, we continue to lead the way in enabling ‘smart’ management of globally distributed ATMs payment system,” said Shlomi Cohen, OTI’s Chief Executive Officer.

About OTI

OTI is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “expect,” “anticipate,” “intend,” “plan,”   “will,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding continue delivering significate numbers of our Uno-8 advanced secure contactless NFC readers to the global Smart ATM market in the future, our expectations to continue to lead the way in enabling ‘smart’ management of globally distributed ATMs payment system and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

OTI Press Contact:

Richard Harris

Marketing Manager

press@otiglobal.com

 

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1 646 688 3559

oti@gkir.com

On Track Innovations Ltd. Reports First Quarter 2019 Financial Results
Shift of manufacturing to non-tariff zone completed;
Expects to resume sequential revenue growth in the second quarter;

ROSH PINAIsraelMay 7, 2019 /PRNewswire/ — On Track Innovations Ltd. (“OTI”) (NASDAQ: OTIV) (the “Company” or “OTI“), a global provider of near field communication (NFC) and cashless payment solutions, today provided a business update and announced financial results for the first quarter ended March 31, 2019.

Highlights of the quarter

  • Revenues of $3.0 million of which the recurring portion accounted for 43%, versus 26% in the prior quarter; on an absolute dollar basis recurring revenues increased sequentially by 12%;
  • OTI completed the production relocation from China to the Philippines at the end of the first quarter of 2019; and revenues are expected to resume growth in the second quarter;
  • Improvement in the gross margins to 55%, compared with 52% in the same year-ago quarter;
  • Reduction in the expenses: operating expenses totaled $3.1 million in the first quarter, compared to $3.4 million in the same year-ago quarter;
  • Received order for more than 6,000 advanced payment systems to the Russian market;

Management Commentary

Mr. Cohen commented, “As we had expected, our first quarter was weak from the revenue standpoint, as we focused on moving our production out of China to the Philippines, where there is no impact from US tariffs. I recently returned from our new production facility which was up and running as of the beginning of the second quarter. I, therefore, believe that the issue which has affected us for the past two quarters is now behind us and we can look forward to a return of sequential revenue growth in the second quarter and beyond. I am pleased by the high level of gross margins as well as the relative increase in our recurring revenue levels, which sets us up positively as our revenues return to growth. “

Following OTI’s sale of its MediSmart division in the fourth quarter of 2018, the financial results of Medismart are included as discontinued operations and all the prior periods’ information has been reclassified to conform with the current period’s presentation.

First quarter 2019 financial results summary

  • Total revenue in the quarter was $3.0 million, compared to $5.5 million in the same year-ago quarter. The revenues in the quarter were affected primarily by the impact of tariffs implemented by the United States on imports from China, where the Company manufactured its products until the end of the first quarter. Over the past 6 months, OTI has taken steps to relocate manufacturing to the Philippines, and the process was completed at the end of the first quarter of 2019. Additionally, the revenues were also impacted by the lower level of orders from the Asia-Pacific region, compared with the same year-ago quarter.
  • Recurring revenues were $1.3 million (43% of total revenues), compared to $1.3 million (23% of total revenues) in the first quarter of 2018.
  • Gross profit in the quarter was $1.6 million, or 55% of revenues, compared to $2.9 million, or 52% of revenues, in the first quarter of 2018.
  • Operating expenses totaled $3.1 million in the first quarter, compared to $3.4 million in the same year-ago quarter.
  • Loss from continuing operations was $1.6 million compared to $400,000 in the same year-ago quarter.
  • Net loss was $1.7 million, or $0.04 per share, compared to a net loss of $333,000, or $0.01 per share in the same year-ago quarter.
  • Adjusted EBITDA loss from continuing operations of $1.1, compared to an adjusted EBITDA loss of $104,000 in the same year-ago quarter.
  • Positive net cash provided by continuing operating activities totaled $186,000 in the first quarter of 2019, compared to positive net cash provided by continuing operating activities which totaled $591,000 in the same year-ago period.

Conference Call

Management will host an investor conference call at 9:00 a.m. EDT on May 7, 2019, to discuss the financial results, provide a corporate update, and conclude with a Q&A session with participants. To participate, please use the following dial-in information:

U.S. Dial-in: 1-888-317-6002
International Dial-in: +1-412-317-5245
Webcast: https://www.webcaster4.com/Webcast/Page/1720/30371

Please dial in a few minutes before the start of the call and request to join the “On Track Innovations Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

About On Track Innovations Ltd

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Press Contact:

Richard Harris, OTI

Director of Marketing                          

+972-4-686-8004

press@otiglobal.com

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1 646 688 3559

oti@gkir.com

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the Company’s expectations to return to sequential revenue growth in the second quarter and beyond, the Company’s belief that the impact of the U.S. tariffs on import from China is now behind it, improvement in profitability, positive trends and 2019 revenue growth.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of patent litigation expenses, stock-based compensation expense and other expenses. Patent litigation expenses and other expenses are presented only at the end of each year, as we do not consider their impact on quarterly results to be material. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENT

The following table reflects selected On Track Innovations Ltd.

non-GAAP results reconciled to GAAP results:

(US dollars in thousands)

Three months ended March 31

2019

2018

(Unaudited)

(Unaudited)

 Net loss

$      (1,745)

$      (333)

  Net loss (income) from discontinued operations

193

(67)

  Financial expenses, net

69

322

  Depreciation

320

335

  Expenses (income tax benefits)

5

(124)

TOTAL EBITDA FROM CONTINUING OPERATIONS

$        (1,158)

$        (157)

 Stock-based compensation

46

53

TOTAL ADJUSTED EBITDA FROM CONTINUING OPERATIONS

$        (1,112)

$        (104)

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

March 31

December 31

2019

2018

Assets

Current assets

Cash and cash equivalents

$      4,014

$       4,827

 Short-term investments

905

1,078

Trade receivables (net of allowance for doubtful

 accounts of $560 and 555 as of March 31, 2019

 and December 31, 2018, respectively)

2,707

4,530

Other receivables and prepaid expenses

1,789

2,060

Inventories

3,964

3,527

Asset held for sale

772

Total current assets

14,151

16,022

Long-term restricted deposit for employees benefit

454

451

Severance pay deposits

387

375

Property, plant and equipment, net

4,013

5,033

Intangible assets, net

241

241

Right-of-use assets

1,381

Total Assets

$    20,627

$     22,122

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

March 31

December 31

2019

2018

Liabilities and Equity

Current Liabilities

Short-term bank credit and current maturities

  of long-term bank loans

$          518

$          260

Trade payables

4,937

4,712

Other current liabilities

2,534

3,622

Total current liabilities

$       7,989

$      8,594

Long-Term Liabilities

Long-term loans, net of current maturities

32

39

Long-term liabilities due to operating leases, net of current maturities

857

Accrued severance pay

894

853

Deferred tax liability

426

445

Total long-term liabilities

2,209

1,337

Total Liabilities

10,198

9,931

Equity

Ordinary shares of NIS 0.1 par value: Authorized –

50,000,000 shares as of March 31, 2019 and

December 31, 2018; issued: 42,473,076 shares as

of March 31, 2019 and December 31, 2018;

outstanding: 41,294,377 shares

as of March 31, 2019 and December 31, 2018

1,068

1,068

Additional paid-in capital

225,068

225,022

Treasury shares at cost – 1,178,699 shares as of March 31,

   2019 and December 31, 2018

(2,000)

(2,000)

Accumulated other comprehensive loss

(1,019)

(956)

Accumulated deficit

(212,688)

(210,943)

Total Equity

10,429

12,191

Total Liabilities and Equity

$    20,627

$     22,122

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(US dollars in thousands, except share and per share data)

Three months ended March 31

2019

 * 2018

Revenues

Sales

$              1,722

$           4,241

Licensing and transaction fees

1,291

1,271

Total revenues

3,013

5,512

Cost of revenues

Cost of sales

1,370

2,632

Total cost of revenues

1,370

2,632

Gross profit

1,643

2,880

Operating expenses

Research and development

871

820

Selling and marketing

1,285

1,645

General and administrative

965

907

Total operating expenses

3,121

3,372

Operating loss from continuing operations

(1,478)

(492)

Financial expenses, net

(69)

(32)

Loss from continuing operations before taxes on income

(1,547)

(524)

Income tax (expenses) benefits

(5)

124

Loss from continuing operations

(1,552)

(400)

(Loss) income from discontinued operations

(193)

67

Net loss

$           (1,745)

$            (333)

Basic and diluted net loss attributable to

 shareholders per ordinary share

From continuing operations

$             (0.04)

$           (0.01)

From discontinued operations

   $                    **

$                  **

$             (0.04)

$           (0.01)

Weighted average number of ordinary shares used in computing
basic and diluted net loss per ordinary share

41,294,377

41,214,378

*   Reclassified to conform with the current period presentation.

** Less than $0.01 per ordinary share.

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(US dollars in thousands)

Three months ended March 31

2019

 * 2018

Cash flows from continuing operating activities

Net loss from continuing operations

$              (1,552)

$              (400)

Adjustments required to reconcile net loss to net cash provided by continuing operating
activities:

Stock-based compensation related to options issued to employees and others

46

53

Gain on sale of property and equipment, net

(2)

Accrued interest and linkage differences, net

(12)

14

Depreciation and amortization

320

335

Deferred tax benefits, net

(10)

(124)

Changes in operating assets and liabilities:

Accrued severance pay, net

29

(3)

Decrease in trade receivables, net

1,323

886

The decrease in other receivables and prepaid expenses

264

33

Increase in inventories

(457)

(35)

Increase (decrease) in trade payables

423

(117)

Decrease in other current liabilities

(186)

(51)

Net cash provided by continuing operating activities

186

591

Cash flows from continuing investing activities

Purchase of property and equipment

(115)

(322)

Proceeds from sale of property, plant and equipment

10

Change in short-term investments, net

6

1,164

Proceeds from restricted deposit for employee benefits

10

Investment in capitalized certification costs

(48)

(13)

Net cash (used in) provided by continuing investing activities

(137)

829

Cash flows from continuing financing activities

Increase in short-term bank credit, net

372

33

Repayment of long-term bank loans

(119)

(144)

Net cash provided by (used in) continuing financing activities

253

(111)

Cash flows from discontinued operations

Net cash (used in) provided by discontinued operating activities

(1,231)

244

Total net cash (used in) provided by discontinued operations

(1,231)

244

Effect of exchange rate changes on cash and cash equivalents

(57)

63

Increase in cash, cash equivalents and restricted cash

(986)

1,616

Cash, cash equivalents and restricted cash – beginning of the period

5,105

7,799

Cash, cash equivalents and restricted cash – end of the period

$               4,119

$            9,415

*   Reclassified to conform with the current period presentation.

SOURCE On Track Innovations Ltd. (OTI)

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On Track Innovations Ltd. Reports First Quarter 2019 Financial Results

On Track Innovations Ltd. Reports First Quarter 2019 Financial Results
Shift of manufacturing to non-tariff zone completed;
Expects to resume sequential revenue growth in the second quarter;

ROSH PINAIsraelMay 7, 2019 /PRNewswire/ — On Track Innovations Ltd. (“OTI”) (NASDAQ: OTIV) (the “Company” or “OTI“), a global provider of near field communication (NFC) and cashless payment solutions, today provided a business update and announced financial results for the first quarter ended March 31, 2019.

Highlights of the quarter

  • Revenues of $3.0 million of which the recurring portion accounted for 43%, versus 26% in the prior quarter; on an absolute dollar basis recurring revenues increased sequentially by 12%;
  • OTI completed the production relocation from China to the Philippines at the end of the first quarter of 2019; and revenues are expected to resume growth in the second quarter;
  • Improvement in the gross margins to 55%, compared with 52% in the same year-ago quarter;
  • Reduction in the expenses: operating expenses totaled $3.1 million in the first quarter, compared to $3.4 million in the same year-ago quarter;
  • Received order for more than 6,000 advanced payment systems to the Russian market;

Management Commentary

Mr. Cohen commented, “As we had expected, our first quarter was weak from the revenue standpoint, as we focused on moving our production out of China to the Philippines, where there is no impact from US tariffs. I recently returned from our new production facility which was up and running as of the beginning of the second quarter. I, therefore, believe that the issue which has affected us for the past two quarters is now behind us and we can look forward to a return of sequential revenue growth in the second quarter and beyond. I am pleased by the high level of gross margins as well as the relative increase in our recurring revenue levels, which sets us up positively as our revenues return to growth. “

Following OTI’s sale of its MediSmart division in the fourth quarter of 2018, the financial results of Medismart are included as discontinued operations and all the prior periods’ information has been reclassified to conform with the current period’s presentation.

First quarter 2019 financial results summary

  • Total revenue in the quarter was $3.0 million, compared to $5.5 million in the same year-ago quarter. The revenues in the quarter were affected primarily by the impact of tariffs implemented by the United States on imports from China, where the Company manufactured its products until the end of the first quarter. Over the past 6 months, OTI has taken steps to relocate manufacturing to the Philippines, and the process was completed at the end of the first quarter of 2019. Additionally, the revenues were also impacted by the lower level of orders from the Asia-Pacific region, compared with the same year-ago quarter.
  • Recurring revenues were $1.3 million (43% of total revenues), compared to $1.3 million (23% of total revenues) in the first quarter of 2018.
  • Gross profit in the quarter was $1.6 million, or 55% of revenues, compared to $2.9 million, or 52% of revenues, in the first quarter of 2018.
  • Operating expenses totaled $3.1 million in the first quarter, compared to $3.4 million in the same year-ago quarter.
  • Loss from continuing operations was $1.6 million compared to $400,000 in the same year-ago quarter.
  • Net loss was $1.7 million, or $0.04 per share, compared to a net loss of $333,000, or $0.01 per share in the same year-ago quarter.
  • Adjusted EBITDA loss from continuing operations of $1.1, compared to an adjusted EBITDA loss of $104,000 in the same year-ago quarter.
  • Positive net cash provided by continuing operating activities totaled $186,000 in the first quarter of 2019, compared to positive net cash provided by continuing operating activities which totaled $591,000 in the same year-ago period.

Conference Call

Management will host an investor conference call at 9:00 a.m. EDT on May 7, 2019, to discuss the financial results, provide a corporate update, and conclude with a Q&A session with participants. To participate, please use the following dial-in information:

U.S. Dial-in: 1-888-317-6002
International Dial-in: +1-412-317-5245
Webcast: https://www.webcaster4.com/Webcast/Page/1720/30371

Please dial in a few minutes before the start of the call and request to join the “On Track Innovations Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

About On Track Innovations Ltd

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Press Contact:

Richard Harris, OTI

Director of Marketing                          

+972-4-686-8004

press@otiglobal.com

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1 646 688 3559

oti@gkir.com

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the Company’s expectations to return to sequential revenue growth in the second quarter and beyond, the Company’s belief that the impact of the U.S. tariffs on import from China is now behind it, improvement in profitability, positive trends and 2019 revenue growth.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of patent litigation expenses, stock-based compensation expense and other expenses. Patent litigation expenses and other expenses are presented only at the end of each year, as we do not consider their impact on quarterly results to be material. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENT

The following table reflects selected On Track Innovations Ltd.

non-GAAP results reconciled to GAAP results:

(US dollars in thousands)

Three months ended March 31

2019

2018

(Unaudited)

(Unaudited)

 Net loss

$      (1,745)

$      (333)

  Net loss (income) from discontinued operations

193

(67)

  Financial expenses, net

69

322

  Depreciation

320

335

  Expenses (income tax benefits)

5

(124)

TOTAL EBITDA FROM CONTINUING OPERATIONS

$        (1,158)

$        (157)

 Stock-based compensation

46

53

TOTAL ADJUSTED EBITDA FROM CONTINUING OPERATIONS

$        (1,112)

$        (104)

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

March 31

December 31

2019

2018

Assets

Current assets

Cash and cash equivalents

$      4,014

$       4,827

 Short-term investments

905

1,078

Trade receivables (net of allowance for doubtful

 accounts of $560 and 555 as of March 31, 2019

 and December 31, 2018, respectively)

2,707

4,530

Other receivables and prepaid expenses

1,789

2,060

Inventories

3,964

3,527

Asset held for sale

772

Total current assets

14,151

16,022

Long-term restricted deposit for employees benefit

454

451

Severance pay deposits

387

375

Property, plant and equipment, net

4,013

5,033

Intangible assets, net

241

241

Right-of-use assets

1,381

Total Assets

$    20,627

$     22,122

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

March 31

December 31

2019

2018

Liabilities and Equity

Current Liabilities

Short-term bank credit and current maturities

  of long-term bank loans

$          518

$          260

Trade payables

4,937

4,712

Other current liabilities

2,534

3,622

Total current liabilities

$       7,989

$      8,594

Long-Term Liabilities

Long-term loans, net of current maturities

32

39

Long-term liabilities due to operating leases, net of current maturities

857

Accrued severance pay

894

853

Deferred tax liability

426

445

Total long-term liabilities

2,209

1,337

Total Liabilities

10,198

9,931

Equity

Ordinary shares of NIS 0.1 par value: Authorized –

50,000,000 shares as of March 31, 2019 and

December 31, 2018; issued: 42,473,076 shares as

of March 31, 2019 and December 31, 2018;

outstanding: 41,294,377 shares

as of March 31, 2019 and December 31, 2018

1,068

1,068

Additional paid-in capital

225,068

225,022

Treasury shares at cost – 1,178,699 shares as of March 31,

   2019 and December 31, 2018

(2,000)

(2,000)

Accumulated other comprehensive loss

(1,019)

(956)

Accumulated deficit

(212,688)

(210,943)

Total Equity

10,429

12,191

Total Liabilities and Equity

$    20,627

$     22,122

 

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(US dollars in thousands, except share and per share data)

Three months ended March 31

2019

 * 2018

Revenues

Sales

$              1,722

$           4,241

Licensing and transaction fees

1,291

1,271

Total revenues

3,013

5,512

Cost of revenues

Cost of sales

1,370

2,632

Total cost of revenues

1,370

2,632

Gross profit

1,643

2,880

Operating expenses

Research and development

871

820

Selling and marketing

1,285

1,645

General and administrative

965

907

Total operating expenses

3,121

3,372

Operating loss from continuing operations

(1,478)

(492)

Financial expenses, net

(69)

(32)

Loss from continuing operations before taxes on income

(1,547)

(524)

Income tax (expenses) benefits

(5)

124

Loss from continuing operations

(1,552)

(400)

(Loss) income from discontinued operations

(193)

67

Net loss

$           (1,745)

$            (333)

Basic and diluted net loss attributable to

 shareholders per ordinary share

From continuing operations

$             (0.04)

$           (0.01)

From discontinued operations

   $                    **

$                  **

$             (0.04)

$           (0.01)

Weighted average number of ordinary shares used in computing
basic and diluted net loss per ordinary share

41,294,377

41,214,378

*   Reclassified to conform with the current period presentation.

** Less than $0.01 per ordinary share.

 

ON TRACK INNOVATION LTD.

INTERIM UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(US dollars in thousands)

Three months ended March 31

2019

 * 2018

Cash flows from continuing operating activities

Net loss from continuing operations

$              (1,552)

$              (400)

Adjustments required to reconcile net loss to net cash provided by continuing operating
activities:

Stock-based compensation related to options issued to employees and others

46

53

Gain on sale of property and equipment, net

(2)

Accrued interest and linkage differences, net

(12)

14

Depreciation and amortization

320

335

Deferred tax benefits, net

(10)

(124)

Changes in operating assets and liabilities:

Accrued severance pay, net

29

(3)

Decrease in trade receivables, net

1,323

886

The decrease in other receivables and prepaid expenses

264

33

Increase in inventories

(457)

(35)

Increase (decrease) in trade payables

423

(117)

Decrease in other current liabilities

(186)

(51)

Net cash provided by continuing operating activities

186

591

Cash flows from continuing investing activities

Purchase of property and equipment

(115)

(322)

Proceeds from sale of property, plant and equipment

10

Change in short-term investments, net

6

1,164

Proceeds from restricted deposit for employee benefits

10

Investment in capitalized certification costs

(48)

(13)

Net cash (used in) provided by continuing investing activities

(137)

829

Cash flows from continuing financing activities

Increase in short-term bank credit, net

372

33

Repayment of long-term bank loans

(119)

(144)

Net cash provided by (used in) continuing financing activities

253

(111)

Cash flows from discontinued operations

Net cash (used in) provided by discontinued operating activities

(1,231)

244

Total net cash (used in) provided by discontinued operations

(1,231)

244

Effect of exchange rate changes on cash and cash equivalents

(57)

63

Increase in cash, cash equivalents and restricted cash

(986)

1,616

Cash, cash equivalents and restricted cash – beginning of the period

5,105

7,799

Cash, cash equivalents and restricted cash – end of the period

$               4,119

$            9,415

*   Reclassified to conform with the current period presentation.

SOURCE On Track Innovations Ltd. (OTI)

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On Track Innovations Ltd. to Report First Quarter 2019 Financial Results and Host a Conference Call on Tuesday, May 7th, 2019 at 9 a.m. EDT

ROSH PINNA, Israel, April 23, 2019 /PRNewswire/ — On Track Innovations Ltd. (“OTI“) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, will release financial results for the first quarter ended March 31, 2019 before market open on Tuesday, May 7th, 2019.

Management will host an investor conference call at 9:00 a.m. EDT on May 7th, 2019, to discuss OTI’s first quarter 2019 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:

Q1 2019 Conference Call and Webcast
Date: Tuesday, May 7, 2019
Time: 9:00 a.m. Eastern Daylight Time (6:00 am PST)
U.S. Dial-in: 1-888-317-6002
International Dial-in: +1-412-317-5245
Webcast: https://www.webcaster4.com/Webcast/Page/1720/30371

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q1 2019 Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

About OTI

On Track Innovations (NASDAQ: OTIV) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, please visit www.otiglobal.com.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “may,” “expect,” “intend,” “plan,” “believe” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses,  plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth,  strengthening of our balance sheet and delivery long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

OTI Press Contact:

Richard Harris
Marketing Manager
press@otiglobal.com

OTI Investor Relations Contact:

Gavriel Frohwein
GK Investor and Public Relations
Main: +1-646-688-3559
OTI@gkir.com

Read more...

OTI Receives New and Significant Order for 6,000 Advanced Payment Systems in Russia

OTI delivered 11,000 cashless payment systems to Russia during 2018

ROSH PINNAIsrael, April 1, 2019On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it had received a significant order for more than 6,000 advanced payment systems for use in Russian rail ticketing systems. The systems are due to be delivered primarily in the second quarter.

This is an additional large-scale order from the Russian market following OTI’s successful acceptance of the mandatory MIR certification in the ever-growing Russian self-service market. OTI delivered 11,000 cashless payment systems to Russia in 2018 and expects a higher rate of deliveries in 2019.

OTI’s CEO Shlomi Cohen commented, “We are very pleased with this new order from the Russian market. This confirms that our strategy to gain MIR certification and target this growing market is certainly paying off, generating increasing revenues for OTI. We won this order based on our technological capabilities and a demonstration of the highest level of security. This important customer has become another key reference for us in Russia and we look forward to accelerating our momentum in the region over the coming quarters and years.”

MIR approval was granted to OTI in August 2018, enabling Russian consumers to use an OTI cashless payment solution as a convenient way to make payments through unattended automated machines. The Russian national payment system created the MIR payment card at the end of 2015 with the primary objective of sovereign payments to be independent of foreign organizations. In only 3 years, the number of MIR cards issued has grown quickly and currently amounts to over 37 million, around 20% market share, based on data from the Russian Central Bank.

About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

OTI Press Contact:

Richard Harris
Marketing Manager
+972-4-686-8004
press@otiglobal.com

Investor Relations Contact:

Gavriel Frohwein
+1 646 688 3559
oti@gkir.com

 

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “expect,” “look forward,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth, revenues, profitability, accelerating our momentum in Russia over the coming quarters and years, plans for our existing and new products and services, penetration of new markets and securing new customers, position in the market, contributions of new or existing regions or markets to our growth, strengthening of our balance sheet and delivery long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Read more...

On Track Innovations Ltd. Reports Fourth Quarter and Full Year 2018 Financial Results

On Track Innovations Ltd. Reports Fourth Quarter and Full Year 2018 Financial Results

2018 Revenues of $21.9 million, of which 24% recurring;  Expects Revenue Growth in 2019

Rosh Pina, Israel – March 13, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV) (the “Company” or “OTI”), a global provider of near field communication (NFC) and cashless payment solutions, today provided a business update and announced financial results for the quarter and full year ended December 31, 2018.

Highlights

  • Recurring revenues accounted for 24% of full-year 2018 revenues and on an absolute dollar basis increased by 12% year-over-year to $5.2 million;
  • Solid improvement in gross margins to 51%, up from 50% in 2017;
  • Reported 2018 net loss of $263,000 versus a net loss of $598,000 in 2017;
  • Debt decreased over the year from $5.0 million to $0.3 million; Year-end cash was $5.9 million;
  • More focused and simplified corporate structure: divested non-core MediSmart division, providing an additional $2.75 million to balance sheet;
  • A successful year of global expansion and sales penetration: delivered more than 5,000 advanced payment systems to Japan, 11,000 advanced contactless readers to the Russian market, more than 16,000 advanced contactless readers for smart ATMs globally and 10,000 advanced contactless readers for the retail self-service market;
  • Received MIR National Card Payment System organization certification in Russia and Interac certification in Canada, which has the potential of significantly increasing OTI’s addressable markets.

Management Commentary

“I continue to remain very pleased with our overall progress in 2018, from both the financial and the strategic perspective,” commented Shlomi Cohen, Chief Executive Officer of OTI. “Despite the short-term volatility in the fourth quarter, our revenues continued to grow on a yearly basis, and we’re especially pleased that almost a quarter of our revenues are now recurring.  Combined with an improvement in the gross margin profile and a relatively stable expense footprint, we were able to bring solid improvements in our overall results in 2018. Furthermore, we significantly improved our balance sheet, lowering our debt levels to almost zero.” Continued Mr. Cohen, “From a strategic perspective, 2018 marked an important year. Alongside success in our existing markets, we continued to expand into new international markets, achieving key certifications in Canada and Russia. Both of these payment markets present very significant potential for us.”

“The positive trends we have seen in 2018 and the solid improvements that we have made at OTI in recent quarters put us in a good position to enjoy the fruits of our investments in 2019. Looking ahead, I expect our growth to accelerate, achieving solid revenue growth in 2019 with corresponding improvements in profitability,” concluded Mr. Cohen.

Following OTI’s sale of its MediSmart division, the financial results of Medismart are included as discontinued operations and all the prior periods’ information has been reclassified to conform with the current period’s presentation.

The full Year 2018 Financial Results Summary

  • Full year revenue of $21.9 million compared with $20.9 million in 2017.
  • Recurring revenues, on an absolute dollar basis, increased by 12% to $5.2 million (24% of total revenues), compared to $4.6 million (22% of total revenue) in 2017.
  • Gross profit of $11.2 million, or 51% of revenues, compared to $10.4 million, or 50% of revenues in 2017.
  • Operating expenses totaled $13.1 million in 2018, compared to $12.6 million in 2017.
  • Net loss of $263,000, or loss of $0.01 per share, compared to a net loss of $598,000, or loss of $0.01 per share, in 2017.
  • Adjusted EBITDA loss from continuing operations of $356,000, compared to adjusted EBITDA loss of $673,000 in 2017.
  • Cash, cash equivalents and short-term investments at December 31, 2018, totaled $5.9 million. Debt at the end of 2018 decreased by 94% to $0.3 million compared to the end of 2017.

Fourth Quarter 2018 Financial Results Summary

  • Total revenue in the quarter was $4.5 million, compared to $6.3 million in the same year-ago period. The revenues in the quarter were impacted by the lower level of orders from the Asia-Pacific region as well as tariffs implemented by the United States on imports from China, where the Company manufactures its products. OTI has taken steps to relocate manufacturing to other locations, a process which is expected to be completed by the end of the first quarter of 2019.
  • Recurring revenues, on an absolute dollar basis, were $1.2 million (26% of total revenues), compared to $1.2 million (18% of total revenues) in the fourth quarter of 2017.
  • Gross profit in the quarter was $2.2 million, or 48% of revenues, compared to $2.9 million, or 46% of revenues, in the same year-ago period.
  • Operating expenses totaled $3.0 million in the fourth quarter, compared to $3.5 million in the same year-ago period.
  • Net income of $533,000, or $0.01 per share, compared to a net loss of $693,000, or loss of $0.02 per share, in the fourth quarter of 2017.
  • Adjusted EBITDA loss from continuing operations of $471,000, compared to adjusted EBITDA loss of $204,000 in the same year-ago period.

Conference Call

Management will host an investor conference call at 9:00 a.m. EDT on March 13, 2019, to discuss the financial results, provide a corporate update, and conclude with a Q&A session with participants. To participate, please use the following dial-in information:

U.S. Dial-in: 1-866-250-8117

International Dial-in: +1-412-317-6011

Webcast: https://www.webcaster4.com/Webcast/Page/1720/29378

Please dial in a few minutes before the start of the call and request to join the “On Track Innovations Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay by clicking here and via the investor relations section of the company’s website.

About On Track Innovations Ltd

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment, automated retail and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

Press Contact:

Richard Harris, OTI

Director of Marketing

+972-4-686-8004

press@otiglobal.com

 

Investor Relations Contact:

Gavriel Frohwein

GK Investor & Public Relations

+1 646 688 3559

oti@gkir.com

 

Safe Harbor / Forward-Looking Statements

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “look forward,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “believe,” “should,” “can” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss, among others: the potential from our expansion into new international markets, the importance of the MIR certification in Russia and the Interac certification in Canada for the successful operation in these countries and the potential in these countries, improvement in profitability, positive trends and 2019 revenue growth.  Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are stated under the captions “Risk Factors” in our most recent Annual Report (Form 10-K) and other known and unknown uncertainties and risk factors including those detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains certain non-GAAP measures, namely, adjusted EBITDA from continuing operations, or adjusted earnings from continuing operations before interest, income tax, depreciation and amortization. Adjusted EBITDA from continuing operations represents earnings before interest or financing expenses, income tax, depreciation and amortization, and further eliminates the effect of patent litigation expenses, stock-based compensation expense and other expenses. Patent litigation expenses are presented only at the end of each year, as we do not consider their impact on quarterly results to be material. OTI believes that adjusted EBITDA from continuing operations should be considered in evaluating the Company’s operations since it provides a clear indication of the Company’s operating results. This measure should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for the U.S. GAAP results. The non-GAAP measures included in this press release have been reconciled to the U.S. GAAP results in the tables below.

 

RECONCILIATION OF NON-GAAP ADJUSTMENT The following table reflects selected On Track Innovations Ltd. non-GAAP results reconciled to GAAP results (US dollars in thousands):

 

ON TRACK INNOVATIONS LTD.

RECONCILIATION OF NON-GAAP ADJUSTMENTS

The following tables reflect selected On Track Innovations Ltd, non-GAAP results reconciled to GAAP results:

(US dollars in thousands)

 

    Year ended December 31 Three months ended December 31
    2018        2017 2018            2017 

 

Net (loss) income $             (263) $             (598) $               533 $             (693)
  Net (income) loss from discontinued operations (1,625) (1,787) (1,395) 66
  Financial expenses, net 228 341 98 104
  Depreciation  1,328  1,172 307 293
  Income tax benefit, net (301) (138) (34)  (47)
Total EBITDA FROM CONTINUING OPERATIONS $             (633) $          (1,010) $             (491) $             (277)
Patent litigation and maintenance $                  10 $                  31 $                    3 $                    7
Other expenses (income), net 33 52 (37) 52
Stock-based compensation           234           254 54 14
Total adjusted EBITDA FROM CONTINUING OPERATIONS $             (356) $             (673) $             (471) $             (204)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands)

 

    December 31
    2018 2017

 

Assets  
 
Current assets
Cash and cash equivalents $              4,827 $           6,742
Short-term investments 1,078             3,331
Trade receivables (net of allowance for doubtful
  accounts of $555 and  $568 as of December 31, 2018
  and December 31, 2017, respectively) 4,530             5,827
Other receivables and prepaid expenses 2,060              3,325
Inventories 3,527             3,009
Total current assets

 

 

16,022            22,234
Long term restricted deposit for employees benefit 451 498
Severance pay deposits 375 405
Property, plant and equipment, net 5,033 5,859
Intangible assets, net                  241               336
 
 

 

 

 

Total Assets $            22,122 $         29,332

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED BALANCE SHEET

(US dollars in thousands except share data)

 

  December 31
  2018 2017

 

Liabilities and  Equity  
   
Current Liabilities  
Short-term bank credit and current maturities  
  of long-term bank loans $              260 $           4,181
Trade payables 4,712              7,171
Other current liabilities 3,622 3,276
Total current liabilities 8,594            14,628
Long-Term Liabilities
Long-term loans, net of current maturities 39 814
Accrued severance pay 853 939
Deferred tax liability 445 500
Total long-term liabilities 1,337  2,253
Total Liabilities 9,931            16,881
Commitments and Contingencies
Equity
Shareholders’ Equity
Ordinary shares of NIS 0.1 par value: Authorized –
  50,000,000 shares as of December 31, 2018, and
  2017; issued: 42,473,076 and 42,353,077
  shares as of December 31, 2018 and 2017,
  respectively; outstanding: 41,294,377 and 41,174,378 shares
  as of December 31, 2018 and 2017, respectively 1,068  1,064
Additional paid-in capital 225,022  224,758
Treasury shares at cost – 1,178,699 shares as of December 31, 2018 and 2017 (2,000) (2,000)
Accumulated other comprehensive loss (956) (691)
Accumulated deficit (210,943) (210,680)
Total Equity 12,191  12,451
Total Liabilities and Equity

 

 

 

$         22,122 $         29,332

 

ON TRACK INNOVATIONS LTD.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(US dollars in thousands except share data)

 

  Year ended December 31 Three months ended December 31
  2018 *      2017 2018 *       2017000

 

Revenues
Sales 16,725          $  $           16,252 $              3,372               $5,157
Licensing and transaction fees 5,153  4,621 1,156 1,169
Total revenues 21,878  20,873 4,528 6,326
Cost of revenues
The total cost of revenues 10,710 10,456 2,360 3,390
Gross profit 11,168 10,417 2,168 2,936
Operating expenses
Research and development 3,175  3,263 782 878
Selling and marketing 5,940 5,633 1,240 1,467
General and administrative 3,971  3,620 978 1,102
Patent litigation and maintenance 10 31 3 7
Other expenses (income), net 33 52 (37) 52
Total operating expenses 13,129 12,599 2,966 3,506
Operating loss from continuing operations (1,961) (2,182) (798) (570)
 
Financial expense, net (228) (341) (98) (104)
Loss from continuing operations before taxes on income (2,189) (2,523) (896) (674)
Income tax benefit, net 301 138 34 47
 
Net loss from continuing operations (1,888) (2,385) (862) (627)
Total income (loss) from discontinued operations

 

1,625 1,787 1,395 (66)
Net (loss) income $             (263) $               (598) $                 533 $               (693)
 
Basic and diluted net (loss) income attributable to
 shareholders per ordinary share
From continuing operations $            (0.05) $             (0.06) $            (0.02) $             (0.02)
From discontinued operations $              0.04 $                0.05 $               0.03 $                   **
 

 

$            (0.01) $             (0.01) $               0.01 $             (0.02)
Weighted average number of ordinary shares used in computing basic and diluted net (loss) income  per ordinary share  

41,268,984

 

40,109,875

 

41,260,426

 

40,140,356

       

 

*    Reclassified to conform with the current period presentation.

**  Less than $0.01 per ordinary share.

 

ON TRACK INNOVATION LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(US dollars in thousands)

 

    Year ended December 31
    2018     *       2017     *      2016
Cash flows from continuing operating activities
Net loss from continuing operations $             (1,888) $             (2,385) $              (3,044)
Adjustments required to reconcile net loss to
net cash used in continuing operating activities:
Stock-based compensation related to options and shares issued
  to employees and others 234 254 239
Loss (gain) on the sale of property and equipment (37) 52 83
Accrued interest and linkage differences, net 19 (6) 56
Depreciation and amortization 1,328 1,172 1,172
Deferred tax benefits, net (477) (165) (155)
Changes in operating assets and liabilities:
Accrued severance pay, net (57) 45 (183)
Decrease (increase) in trade receivables, net 1,118 (124) (3,224)
Decrease (increase) in other receivables and prepaid expenses 350 (838) 349
(Increase) decrease in inventories (573) 110 (106)
(Decrease) increase in trade payables (2,089) (644) 1,631
(Decrease) increase in other current liabilities (110) (597) 288
Net cash used in continuing operating activities (2,182) (3,126) (2,894)
Cash flows from continuing investing activities
Purchase of property and equipment (636) (293) (311)
Proceeds from the sale of property, plant, and equipment 68 17 1,779
Change in short-term investments, net 1,495 1,773 (822)
Investment in capitalized certification costs (120) (239) (188)
Investment in restricted deposit for employee benefits (44)
Proceeds from the restricted deposit for employee benefits 8 44  142
Net cash provided by continuing investing activities 815 1,302 556
Cash flows from continuing financing activities
(Decrease) increase in short-term bank credit, net (3,554) (335) 1,018
Proceeds from long-term bank loans 27
Repayment of long-term bank loans (1,064) (632) (1,581)
Proceeds from exercise of options and warrants 34 92 177
Net cash used in continuing financing activities (4,584) (875) (359)
Cash flows from discontinued operations
Net cash provided by discontinued operating activities 750 2,311 469
Net cash provided by discontinued investing activities 2,750 2,292
 
Total net cash provided by discontinued operations 3,500 2,311 2,761
 
Effect of exchange rate changes on cash and cash equivalents (243) 687 (268)
 
(Decrease) Increase in cash and cash equivalents (2,694) 299 (204)
Cash and cash equivalents at the beginning of the year 7,799 7,500 7,704
 
Cash and cash equivalents at the end of the year $               5,105 $                7,799 $                7,500

 

*    Reclassified to conform with the current period presentation.

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OTI Reports Fourth Quarter and Full Year 2018 Financial Results, Wednesday, March 13th. 2019

Corporate will host a conference call at 9 a.m. EST

 ROSH PINNA, ISRAEL – February 26, 2019 – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, will release its financial results for the fourth quarter and full year ended December 31, 2018 prior to the market open on Wednesday, March 13, 2019.

Management will host an investor conference call that same day, at 9:00 a.m. ET to discuss the financial results, provide a corporate update, and will conclude the call with a Q&A session with participants.

To participate, please use the following:

Q4 2018 Conference Call and Webcast

Date: Wednesday, March 13, 2019

Time: 9:00 a.m. Eastern Standard Time (6:00 am PST)

U.S. Dial-in: 1-888-317-6002

International Dial-in: +1-412-317-5245

Webcast: https://www.webcaster4.com/Webcast/Page/1720/29378

Please dial in at least 10 minutes before the start of the call and request to join the “On Track Innovations Q4 2018 Earnings Conference Call” to ensure timely participation.

The conference call will be available for replay from this link and via the investor relations section of the company’s website.

About OTI: On Track Innovations (NASDAQ: OTIV) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, please visit www.otiglobal.com.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “will,” “may,” “expect,” “anticipate,” “intend,” “plan,”  or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth or profitability, reduction of costs and expenses,  plans for our existing and new products and services, penetration of new markets and securing new customers, contributions of our regions to our growth,  strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise. The reader is cautioned not to place undue reliance on forward-looking statements.

OTI Press Contact: Richard Harris, Marketing Manager, press@otiglobal.com

OTI Investor Relations Contact: Gavriel Frohwein, GK Investor and Public Relations, Tel: +1-646-688-3559 OTI@gkir.com

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OTI Partners with Puma Energy to Gain Momentum Across Southern Africa

ROSH PINNAIsrael, February 25, 2019On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, today announced that it has successfully partnered with Puma Energy in Namibia and Botswana, launching the iFUELGUARD B2B solution based on OTI’s innovative AVI EasyFuelPlus solution.  Puma Energy also welcomes customers who are contracted to Masana Petroleum, BP’s commercial arm in the region, to Puma stations in Namibia and Botswana for all their cross border refueling requirements.

OTI expects to generate increased revenues from this solution as Puma’s footprint grows and transaction volumes increase.

Puma Namibia recently, embarked on a program to more than double its footprint of service stations offering this facility   This was a significant factor in them securing a recently awarded government tender.  Puma Energy completed the rollout of iFUELGUARD based on the EasyFuelPlus technology solution in Zambia. Implementations in the South African and Angolan markets are underway, with expectations of a commercial launch in the second quarter. Furthermore, five additional Southern African markets are targeted in the next phase of implementation in the near term.

“We are pleased with the partnership with Puma, which will significantly expand our footprint for our EasyFuelPlus solution in the Southern African market,” commented Shlomi Cohen, CEO of OTI. “The partnership using iFUELGUARD and EasyFuelPlus to minimize fuel fraud and effectively manage fuel consumption represents the next generation of B2B fueling. Together with Puma, we aim to expand the deployment of our solution into Central America and APAC in the second half of 2019 and look forward to a long and fruitful partnership together.”

“We are excited to launch this innovative solution to our customers in Africa and look forward to it becoming part of our global offer,” said Sidy Bane Puma Energy’s Chief Operating Officer, Africa. 

 About Puma Energy

Puma Energy is an integrated local and global energy organization. We bring secure, safe and affordable fuels, lubricants and other oil products to businesses, households, and motorists every day. Our customer base and product categories worldwide include Aviation, Bunkering, Bitumen, Liquid Petroleum Gas, Lubricants and Fuel. We are obsessed with product quality and the safety of our people and customers. Whilst we work hard to deliver service excellence, Puma Energy is about making a real difference in the lives of ordinary people and all the communities within which we operate. We have a growing network of over 3,130 high-quality service stations (and counting) across 49 countries

 About OTI

On Track Innovations (OTI) is a global leader in the design, manufacture, and sale of secure cashless payment solutions using contactless NFC technology with an extensive patent and IP portfolio. OTI’s field-proven innovations have been deployed around the world to address cashless payment and management requirements for the Internet of Payment Things (IoPT), wearables, automated retail, and petroleum markets. OTI distributes and supports its solutions through a global network of regional offices and alliances. OTI is the proud recipient of the 2017 AI Award for Best Cashless Payment Solutions Provider – Israel. For more information, visit www.otiglobal.com.

OTI Press Contact: Richard Harris: Marketing Manager +972-4-686-8004 press@otiglobal.com

Investor Relations Contact: Gavriel Frohwein +1 646 688 3559 oti@gkir.com

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, we are making forward-looking statements. For example, we are using forward-looking statements when we discuss our expectations regarding our growth, revenues, profitability, plans for our existing and new products and services, penetration of new markets and securing new customers, position in the market, contributions of new or existing regions or markets to our growth, strengthening of our balance sheet and deliver long-term shareholder value. Because such statements deal with future events and are based on OTI’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release. Forward-looking statements could be impacted by the effects of the protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, or new and existing products and our ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016, and in subsequent filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

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